"Force-Placed" Insurance Practices

Posted on Jul 7, 2012 7:05pm PDT

When a home loan is approved, mortgage servicers or lenders typically require
the borrower, under the terms of the mortgage, to carry appropriate hazard,
flood, and/or wind insurance on the property to cover the lender’s
risk. If the borrower’s policy lapses, the lender or mortgage servicer
“force places” new coverage to cover its interest in the property,
and charges the homeowner the full amount of the premium, by either deducting
its costs from the borrower’s escrow account or adding the cost
to the balance of the mortgage principal.

Some mortgage lenders have allegedly charged premiums for such “force-placed”
policies that are much too high. If you believe you have paid unduly high
insurance premiums on hazard, wind, and/or flood insurance that was placed
by your lender, please contact Meyer Wilson.

Please fill out the form below and the lawyers at our firm will review
your complaint. We continue to offer complimentary evaluations of potential
consumer claims because we are dedicated to helping consumers and holding
mortgage lenders and banks accountable.

Bloomfield Hills
Office

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